DA 18-739
Released:  July 18, 2018

WIRELINE COMPETITION BUREAU ANNOUNCES UPDATED LIFELINE MINIMUM SERVICE STANDARDS AND INDEXED BUDGET AMOUNT
WC Docket No. 11-42

By this Public Notice, the Wireline Competition Bureau (Bureau) announces the updated minimum service standards levels for speed and usage allowances for Lifeline-supported services as required by the 2016 Lifeline Order. Lifeline and Link Up Reform and Modernization et al., WC Docket No. 11-42 et al., Third Report and Order, Further Report and Order, and Order on Reconsideration, 31 FCC Rcd 3962, 3989-3997, paras. 73-98 (2016) (2016 Lifeline Order); 47 CFR § 54.408.  The 2016 Lifeline Order established minimum service standards for certain Lifeline-supported services and either established annual increases in those standards in the Commission’s rules or directed the Bureau to update the minimum service standards pursuant to calculations set out in the order.  Id. at 3988-4000, paras. 69-106; 47 CFR § 54.408(b)-(c).
  Specifically, we announce the newly calculated minimum service standards for fixed broadband.  We also remind providers of the updated minimum service standards for mobile broadband and mobile voice service, as established in the Commission’s rules.  These standards will take effect on December 1, 2018.  Finally, we announce that the budget for federal universal service support for the Lifeline program for calendar year 2019 will be $ 2,327,114,250. See 2016 Lifeline Order, 31 FCC Rcd at 4110, para. 403.

Fixed broadband minimum service standards.  Beginning December 1, 2018, the Lifeline minimum service standard for fixed broadband speed will be 18 Mbps downstream and 2 Mbps upstream, as calculated from FCC Form 477 data. See 47 CFR § 54.408(c)(1)(i); 2016 Lifeline Order, 31 FCC Rcd at 3993-94, paras. 88-90; FCC, Form 477 Resources (May 6, 2014), https://www.fcc.gov/general/form-477-resources-filers (The fixed broadband speed standard was derived from the FCC Form 477 fixed broadband subscription data as of December 31, 2016.  The data was ordered lexicographically by download speed then upload speed to determine percentiles).  
  We note that the Commission provides an exception to the fixed broadband minimum service speed standard when the Lifeline provider does not offer any generally available residential fixed broadband packages that meet the minimum service standard at a subscriber’s residence. See 47 CFR § 54.408(d); 2016 Lifeline Order, 31 FCC Rcd at 4000-4001, paras. 107-113.
  In such situations, the Lifeline provider may receive Lifeline support for the highest performing generally available residential fixed broadband service offering of at least 4 Mbps downstream and 1 Mbps upstream. 47 CFR § 54.408(d).
  Beginning December 1, 2018, the Lifeline minimum service standard for fixed broadband data usage will be 1000 GB per month, as calculated from Urban Rate Survey data. See 47 CFR § 54.408(c)(1)(ii); 2016 Lifeline Order, 31 FCC Rcd at 3994, para. 90; FCC, Urban Rate Survey Data & Resources (Apr. 18, 2014), https://www.fcc.gov/general/urban-rate-survey-data-resources (2018 Broadband Survey data).

	Mobile broadband minimum service standards.  The 2016 Lifeline Order established an automatic update to the Lifeline minimum service standard for mobile broadband service data usage through November 30, 2019. See 47 CFR § 54.408(b)(2); 2016 Lifeline Order, 31 FCC Rcd at 3994-97, paras. 91-98.
  Beginning December 1, 2018, the Lifeline minimum service standard for mobile broadband data usage will increase to 2 GB per month. 47 CFR § 54.408(b)(2)(ii)(C).
  The Lifeline minimum service standard for mobile broadband speed remains 3G mobile technology. 47 CFR § 54.408(b)(2)(i).
  
Mobile voice telephony minimum service standard.  The 2016 Lifeline Order established an automatic update to the Lifeline minimum service standard for mobile voice service through November 30, 2018. See 47 CFR § 54.408(b)(3); 2016 Lifeline Order, 31 FCC Rcd at 3998-99, paras. 100-102.
  Beginning December 1, 2018, the Lifeline minimum service standard for mobile voice service will increase to 1000 minutes per month. 47 CFR § 54.408(b)(3)(iii).

	Annual budget.  The 2016 Lifeline Order adopted an initial budget of $2.25 billion for the calendar year beginning January 1, 2017. 47 CFR § 54.423(a)(1); 2016 Lifeline Order, 31 FCC Rcd at 4110, paras. 400-402.
  The 2016 order also stated that the budget amount will be indexed to inflation in accordance with the Consumer Price Index for all items from the Department of Labor, Bureau of Labor Statistics. 47 CFR § 54.423(a)(3); 2016 Lifeline Order, 31 FCC Rcd at 4110, para. 403.
  To perform this calculation, the Bureau used the annual percent change factor for the preceding year to the year in which the calculation is being performed, here 2017. See United State Department of Labor, Bureau of Labor Statistics, Consumer Price-Index All Urban Consumer U.S. City Average, Not Seasonally Adjusted, Series CUUR0000SA0 (last visited May 17, 2018), https://data.bls.gov/timeseries/CUUR0000SA0?output_view=pct_12mths (annual average 12-month percent change for 2017 was 2.1 percent).
  Based on this calculation, the indexed budget for federal universal service support for the Lifeline program for the calendar year beginning January 1, 2018 was $2,279,250,000, Wireline Competition Bureau Announces Updated Lifeline Minimum Service Standards and Indexed Budget Amount, Public Notice, 32 FCC Rcd 5087, 5088 (WCB 2017).
 and the indexed budget for the calendar year beginning January 1, 2019, will be $2,327,114,250.
For further information, please contact Nathan Eagan, Telecommunications Access Policy Division, Wireline Competition Bureau, at (202) 418-0991, or preferably at nathan.eagan@fcc.gov.

– FCC –
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